If you’re an adventure-loving person looking for long road trips or looking for a way to get around the town, a motorcycle is a great option.
As with any kind of vehicle, you will go for a good insurance plan. The price of an insurance coverage plan for motorcycles depends on a variety of factors.
Higher performance bikes, such as racing motorcycles, tend to have higher premiums than less powerful motorcycles. If you're riding your bike in the city, insurance premiums will also be higher than if you'd be riding it seasonally in a rural area.
In this article, we will go through all the information you need before buying insurance coverage for your motorcycle. We will discuss how motorcycle insurance works, why buying a motorcycle insurance plan is necessary, what damages these insurance plans cover, and which insurance providers offer the best plans.
Why You Should Get Motorcycle Insurance
Most states require motorcycle owners to buy liability insurance. Liability coverage, which is almost always required, pays out for others’ injuries or damages if you cause an accident. The lowest amount of liability insurance you must buy for your motorcycle is the same as your state’s car insurance minimum requirements.
Consider buying extra liability beyond your state’s minimum requirements to protect your assets in case you’re sued over an accident. Minimum liability limits might not be enough to pay your legal costs and claims if you’re sued, and creditors could go after some of your assets. You can also get bodily injury liability insurance for your motorcycle that covers passengers.
Bodily injury and property damage liability covers any bodily injury to others or property damage that a motorcycle rider may cause to a third party while operating their vehicle. When you're involved in an accident, a third party can issue a liability claim against you. In summary, be sure you have the right coverage for your bike.
What Motorcycle Insurance Plans Cover
Coverage options for motorcycle insurance are similar to the standard ones you’ll find for car insurance.
Collision coverage will page for motorcycle damage due to an accident, less your deductible amount. A deductible the amount you choose when you purchase your policy which is deducted from a claim check.
Comprehensive coverage will cover you if your motorcycle is stolen or damaged by anything other than a collision with another vehicle.
Medical payments (MedPay) Coverage
If you and your passenger are injured in an accident, medical payment coverage pays for medical bills.
Driving or riding a motorcycle comes with risks, no matter how many precautions you take. Coverage for medical payments can come in handy if you do not have health insurance or you do not have enough.
Personal Injury Protection
In general, Personal injury protection (PIP) pays all the medical bills for you, your passenger, or pedestrians in an accident, irrespective of who is at fault.
The following are some add-ons that insurance companies offer to the existing motorcycle insurance policies for added coverage.
Trip interruption coverage
When your motorcycle is damaged in a collision far from home, (typically described in your policy) it pays off for lodging, transportation, and food for the rest of the trip.
Coverage for custom parts, equipment, and accessories
In most states, insurers provide comprehensive and liability policies covering certain custom parts and accessories. Customizing a bike is part of the attraction of owning a motorcycle for many riders though.
Transport trailer coverage
Many insurance providers offer coverage priced at up to $7,000 for trailers.
Many insurance companies offer roadside assistance service that includes towing and labor at the site of the breakdown of your bike.
Motorcycle Insurance Pay Out Settlements
Motorcycle insurance is similar to car insurance, as the policy provides you with financial protection against injury or damage that occurred while driving your vehicle.
A standard motorcycle insurance policy provides liability insurance, which covers any injury that you cause to others, which may also provide coverage for your own accident and accidents. If you have more than one motorcycle, you can buy a multi-bike policy which should get you a discount.
These are three types of settlements if your bike is totaled or stolen:
Actual cash value
Pays the cash equivalent of what is worth your motorcycle, excluding the depreciation and other deductibles.
Pays the premium you picked when you bought the program.
Pays the amount agreed upon by you and the insurance provider upon issuance of the policy. The amount remains constant.